Saipem has been awarded a €700 million contract to construct a biorefinery in Priolo, Sicily, for Eni Industrial Evolution. The facility, slated for completion by 2028, will produce 500,000 tonnes of Sustainable Aviation Fuel and renewable diesel annually, bolstering Italy's position in the European energy transition.
Saipem has finalized an Engineering, Procurement, and Construction (EPC) agreement with Eni Industrial Evolution to develop a new biorefinery in Priolo, Sicily. The project, valued at approximately €700 million, stems from a strategic partnership between Eni and Q8 Italia. Under the terms of the agreement, Saipem will manage detailed engineering, material procurement, and the construction of the site’s primary processing units, with completion targeted for the end of 2028. Saipem is an Italian multinational specializing in advanced engineering and large-scale infrastructure for the energy sector.
Eni is a global integrated energy major focusing on the decarbonization of industrial processes through its dedicated evolution subsidiary. The facility is designed with an annual capacity of 500,000 tonnes, offering the operational flexibility to produce both Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO) diesel.
This development extends a long-term collaboration between Saipem and Eni dedicated to expanding biorefining capabilities across Italy. This investment is significant as it aligns with European Union mandates to reduce carbon intensity in the transport sector, particularly through the ReFuelEU Aviation framework. By repurposing industrial sites for bio-feedstock processing, the project provides a blueprint for the transition of traditional refining assets. For investors and industry stakeholders, the Priolo project signals a continued shift in capital allocation toward low-carbon technologies.
The multi-year construction timeline provides high revenue visibility for the industrial services sector while securing Sicily’s role as a Mediterranean hub for renewable fuel logistics. Furthermore, the focus on SAF and HVO addresses critical supply gaps in the aviation and heavy-duty logistics markets, positioning the involved entities to capture growth in the burgeoning green fuel economy.
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